Data Analytics Outsourcing Market in India is Worth $27 Billion: Study by AIM & Praxis Business School

The annual Analytics & Data Science Industry In India: Study 2019 by Analytics India Magazine and Praxis Business School, now in its fifth year, identifies the key trends and revenue drivers for the analytics industry. They took stock of the burgeoning analytics industry in India - domestic and outsourcing, the leading revenue generators, the geographies served and where the analytics market is heading. In fact, analytics outsourcing takes a lead, indicated by more than $27 billion in revenue.

The study finds the biggest winners in the analytics outsourcing market are Indian IT bellwethers TCS, Wipro, Genpact, Tech Mahindra among others that form almost 35% of the analytics outsourcing market.

Here are the key highlights

The cumulative analytics market in India stands at $30 billion

Outsourcing is the main driver of revenue for Indian vendors accounting for $27 billion in revenue

The domestic analytics market stands at $3.03 billion in size and is expected to double by 2025

Indian IT bellwethers are the leading revenue generators in the analytics market with TCS clocking nearly $2 billion from analytics services

Sectors that are experiencing the highest growth are Finance & Banking with 36 per cent adoption followed by Marketing & Advertising that comes second at 25 per cent

Bengaluru leads as an analytics hub with 28% of the market being captured by India's Silicon Valley

As companies expand their digital portfolio, India Inc led by TCS, Genpact, Wipro are investing heavily around data and analytics, increasing the range of services and also the scope of projects to corner a bigger chunk of share

The numbers indicate that the upcoming years could see more outsourcing, especially in the areas of advanced analytics and cognitive automation. Monetizing data has become a key priority among business leaders. Another top-of-the-mind issue for business leaders is the competition for talent with the right skill-set. In that respect, large enterprises are winning the talent race with 38 per cent of analytics professionals working in large-sized companies as compared to 33 per cent of practitioners in mid-sized organisations.

"We believe increased adoption of analytics and advancement in AI will further drive the demand for analytics outsourcing in the coming years," said Bhasker Gupta, Founder & CEO, Analytics India Magazine.

"I believe Data Science is poised for tremendous growth for the following three reasons: one, the data explosion that is yet to happen - we are probably at the tip of the iceberg with IoT and social media yet to achieve their full potential; two, continued improvements in machine learning software and algorithms which will make data science increasingly easier to use and more useful to apply; and three, development of better computing resources to keep pace with the data and machine learning algorithms. A combination of these three will drive growth in data science, which is, in my opinion, just scratching the surface at this point in time," said Charanpreet Singh, Founder & Director, Praxis Business School Foundation.